Skip to main content

Full text of "Annual Evaluation Report Fiscal Year 1984"

See other formats


505-1

DIRECT LOAN PROGRAM
(CFDA No. 84,038)

I.    PROGRAM PROFILE

Legislation:    Higher   Education   Act   of  1965,   Title   IV,   Part   E,   Public  Law
19-329 as  amended,   (20  U.S.C.   1087aa-1087ii.)   (Expires   September  30,   1985).

Funding Since 1980:
Fiscal Year

1980
1981
1982
1983
1984

Authorization

$400,000,000
400,000,000
286,000,000
475,000,000
180,860,000

Appropriation

$300,800,000
200,800,000
193,360,000
193,360,000
180,860,000

Purpose: To help institutions make low-interest loans to financially needy
students to help pay their cost of attending postsecondary education institu-
tions. The Direct Loan program is the loan component of the "campus-based
programs," which are directly administered by financial aid officers at
postsecondary institutions. Direct Loans provide the financial aid officer
flexibility in packaging student aid awards that can best meet individual
student needs.

Eligibility: Accredited postsecondary institutions meeting eligibility re-
quirements may participate. ED establishes an Institutional revolving fund
financed from repayment of previous loans and from annual Federal Capital
Contribution appropriated by Congress. ED allocates appropriated funds to
the States according to statutory formula, and then allocates them to insti-
tutions according to both statutory requirements and program regulations.

If the Direct Loan Program (DL) appropriation exceeds the FY 1981 appropriation
of $186 million, the State allotment formula uses the ratio of full-time
enrol lees in institutions of higher education within the State to the total
number of such persons enrolled in all the States. If necessary, ED apportions
additional funds to a State to make its amount equal to that for FY 1972.

Students are eligible for a loan if (1) they are enrolled on at least a half-
time basis and are making satisfactory academic progress as determined by
the institutions or (2) they have been accepted for enrollment for at least
half time at an eligible institution, and are United States citizens or are
in the U.S. for other than a temporary purpose and intend to become permanent
residents. Direct Loan applicants must demonstrate financial need as deter-
mined by one of the approved need analysis systems. maintain this loan/cost ratio, however,